Forwarders set up new centre

EIGHT freight forwarders will move into Changi South Aviation Distrizone (ADZ) over the next 18 months, according to the Civil Aviation Authority of Singapore.

ADZ is a 38.8 hectare warehouse and distribution zone located just outside Singapore Changi Airport.

The eight are committing more than S$100 million (about HK$666 million) to build up their logistics capability and consolidate Singapore as a hub distribution centre, according to the authority's monthly magazine, Air Cargo.

The forwarders are Air Express International (AEI), Aerolink Freight International, Burlington World Express, CG Aerospace, U-Freight Singapore, Concord Express, Kintetsu Worldwide Express (KEW) and Thyssen Haniel Logistics. They have taken up leases of 30 years or more with the Jurong Town Corporation for plots ranging from 0.5 ha to 3.4 ha.

First off the block will be the AEI Distribution Centre. Its 22,500 square metre warehouse and office complex is being developed in two phases.

The first phase, involving a four-storey warehouse and a six-storey office block totalling 17,236 sq m, is about to be completed.

Another 4,700 sq m of storage space will be developed by 1996.

Burlington Express will follow in July. Much smaller in capacity, with a build-up area of 5,140 sq m, its $10 million facility is in line with Burlington's concept of having dispersed and dedicated facilities to meet customer requirements.

It now operates in Loyang (two x 2,804 sq m), Marsiling (2,617 sq m) and Senoko (2,804 sq m). Three are dedicated to the distribution needs of two Fortune 500 companies.

The other six developments in Changi South will be phased over the next year.

Aerolink is building a $20 million facility with a build-up area of 15,700 sq m to complement operations in Aerolink Distribution Centre and Micado Distribution Centre.

U-Freight Singapore will spend a similar sum on a six-storey office block and a three-storey warehouse which will have a build-up area of 12,150 sq m.

CG Aerospace is committing $35 million to bring in the biggest facility of 24,300 sq m.

The eight are among the 14 companies that have committed themselves to ADZ, which Jurong Town Corporation (JTC) has established in Xilin Avenue to house companies involved in the warehousing and distribution of high-value, time-sensitive air cargo, either for in-house or third-party requirements.

About 15 ha has been allocated out of a total of 31.8 ha.

JTC says it has received strong response to the remaining parcels.

Forwarders will provide a broad menu of services for third parties.

Apart from transportation, these include storage, inventory control, pick and pack, kitting and even assembly of components, essentially everything a customer needs to move his goods to the market.

'The business is very market driven,' said C P Teh, U-Freight Singapore's general manager for logistics.